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Stock Futures Drop After Weak China, Europe Data

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NEW YORK — U.S. stock futures fell Thursday, with blue chips headed for a third-straight loss, as signs of slowing growth in China and Europe unnerved investors ahead of jobless claims and inflation data.

European markets were broadly lower after data showing economic activity surprisingly declined in February.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures lost 35 points, or 0.2%, to 15981. On Wednesday, the Dow erased an early gain of as much as 95 points to close down 90 points, or 0.6%, after falling 24 points on Tuesday.

S&P 500 index futures gave up five points, or 0.3%, to 1320 and Nasdaq-100 futures fell 15 points, or 0.4%, to 3639. Changes in stock futures don’t always accurately predict stock moves after the opening bell.The S&P 500 had risen in intraday trading Wednesday to less than one point below its Jan. 15 record closing high of 1848.38, before turning lower to close down 12 points, or 0.7%. The late selloff occurred after minutes from the Federal Reserve’s January policy meeting showed that some Fed officials felt interest rates may need to be raised sooner than expected.

Also weighing on sentiment Thursday, HSBC’s China preliminary manufacturing purchasing managers index dropped to 48.3 in February from 49.5 in January, signaling further contraction in the world’s second-biggest economy.

Separately, Markit said its composite purchasing managers index for the euro zone slipped to 52.7 in February from January’s 52.9, missing expectations of a rise to 53.0. Readings above 50 signal expansion.

Further violence in Ukraine, which broke a truce agreement reached Wednesday, added to investor jitters.

John Canally, investment strategist at broker-dealer LPL Financial, said with earnings season largely over, investors will be refocusing on macro issues, such as global growth, the Fed and geopolitical events. That said, Mr. Canally feels “it is somewhat encouraging” to see the market not hit harder this morning following disappointing data from China and Europe.“The market seems to have given the U.S. economic data a weather-related ‘free pass’ for January and February, but now seem to be extending that courtesy to overseas data,” Mr. Canally said.

He added that his view on the Fed hasn’t changed, despite the hawkish tone inferred by investors from the January policy-meeting minutes. He believes the Fed is still “committed to keep rates low” through at least 2015.

At 8:30 a.m. Eastern, initial claims for jobless benefits are expected to slip to 335,000 in the latest week from an original estimate of 339,000 the week before. At the same time, the consumer-price index for January is seen rising 0.1% on the month, or by 0.2% when excluding food and energy components.

After the open, the Conference Board’s leading economic index for January is forecast to rise 0.4%, and the Philadelphia Federal Reserve’s February index of manufacturing activity is expected to slip to 7.4 from January’s 9.4.Among early stock movers, Facebook shed 3.2% in premarket trading after saying late Wednesday it agreed to buy smartphone-messaging company WhatsApp for $19 billion in cash and stock. Facebook had closed Wednesday at an all-time high, after gaining 25% so far this year.

Tesla Motors surged 12% after the electric-car maker reported late Wednesday fourth-quarter earnings that beat analyst estimates and provided an upbeat 2014 outlook.

Dow component Wal-Mart Stores declined 1.1% after the world’s largest retailer reported fiscal fourth-quarter earnings at the low end of its previously-lowered forecast range. It also provided a current-quarter outlook that was below analyst estimates.

In other corporate news, Safeway rallied 4.8% after saying late Wednesday it was in discussions about a possible sale of the company. The grocer also said it would distribute the remaining 37.8 million shares its owns — a 72.2% stake — in Blackhawk Network Holdings to Safeway’s shareholders. Blackhawk’s stock was still untraded ahead of the open.

The yield on the 10-year Treasury note ticked lower to 2.726% from 2.730% late Wednesday.Gold futures declined 0.6% to $1,312.80 an ounce, after snapping a nine-session win streak on Wednesday. Crude-oil futures eased 0.2% to $102.63 a barrel, after settling at a 4 1/2-month high on Wednesday. The dollar edged higher against the euro, but lost ground against the Japanese yen.

In Europe, the Stoxx Europe 600 shed 0.7% and was headed for its second decline in 12 sessions. It had been down as much as 1.1% earlier in the session. Germany’s DAX 30 index slid 1.3%, France’s CAC 40 gave up 0.4% and the U.K.’s FTSE 100 lost 0.4%.

Some analysts said investors shouldn’t be too discouraged by the slowing in economic activity in the euro area. The data suggested a “pause” in the recent economic improvement, said economists at BNP Paribas. “Manufacturing sentiment hardly ever improves in a straight line, and a little wobble here and there doesn’t automatically imply a shift in trend,” they said.

Asian markets also fell. Japan’s Nikkei Stock Average slumped 2.2% as the weak Chinese data strengthened the yen, which weighed on exporter shares. China’s Shanghai Composite eased 0.2%.

– WALLSTREET JOURNAL

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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